Nike's Earnings Jump 108% Despite Trade War

Nike's profits surged 108 percent in the previous fiscal year (FY), while earnings exceeded analysts' expectations in the fourth quarter.

The sportswear company reported a profit of $ 989 million in the three months prior to May, compared to $ 1.13 billion in the same period last year.

The company's profits grew 108 percent to $ 4.029 billion in FY 2018-19 compared to $ 1,933 billion a year earlier. In addition, revenues rocketed to $ 39.1 billion from $ 36.3 billion.

Analysts had expected earnings to record 66 cents a share, however, it posted 62 cents, down from 69 cents a year earlier.

[caption id="attachment_60776" align="aligncenter" width="730"] Nike stock exchange chart[/caption]

They also forecast the company's revenue to reach $ 10.16 billion, yet, Nike recorded $ 10.18 billion in the fourth quarter compared with $ 9.78 billion in the same period last year.

Sales in China climbed 22 percent in the fourth quarter to record $ 1.69 billion and sales in North America rose 7 percent to $ 4.16 billion.

At the end of today's trading, Nike rose 1.3 percent at $ 83.66 per share after recording $ 82.40 last Tuesday.

[caption id="attachment_60777" align="aligncenter" width="728"] Inside Nike headquarters in Beaverton, Oregon.[/caption]

“We’ve not seen any impact on our business to date," Nike CFO Andy Campion said in response to the ongoing trade war between the US and China.

"We continue to see strong momentum," he added, pointing out that Nike will continue to make products in China and expand its production lines there.